New Delhi, January 24 : India’s travel and hospitality sector is poised for robust growth in employment, with a projected hiring increase of 8.2% during the second half of FY25, according to a report released by staffing solutions firm TeamLease Services.
The report highlights that 66% of companies in the sector plan to expand their workforce in the October-March period of FY2024-25. This optimistic outlook underscores the sector’s sustained recovery and growing momentum in job creation.
“The hiring intent demonstrated by 66% of companies in the travel and hospitality industry speaks volumes about its transformation. Businesses are adapting to meet the needs of modern travellers who are eco-conscious and focused on unique experiences,” said Balasubramanian A, Senior Vice President and Business Head, TeamLease Services.
Notably, the report sheds light on a shift in employment trends, with tier-2 and tier-3 cities emerging as significant employment hubs alongside traditional metro cities. “The rise of these smaller cities as employment hotspots is a remarkable development, offering opportunities to talent in previously untapped regions,” Balasubramanian added.
Key Drivers of Growth
The sector’s employment surge is being driven by several factors, including the adoption of smart tourism technologies, a resurgence in MICE (Meetings, Incentives, Conferences, and Exhibitions) activities, and an increased emphasis on sustainable tourism practices. These advancements are creating demand for professionals skilled in areas such as sustainability coordination, smart travel experience design, and the implementation of contactless technologies.
India’s travel and tourism industry, which contributed 9% to the country’s GDP in 2024, amounting to over $11 trillion—a 12% increase from the previous year—continues to play a vital role in the nation’s economic growth. Domestic tourism, particularly religious travel and visits to tier-2 and tier-3 cities, has also seen significant growth, further boosting the sector.
Government Initiatives Catalysing Growth
The report credits government initiatives such as the Swadesh Darshan Scheme, which promotes theme-based tourist circuit development, and the PRASHAD Scheme, focused on pilgrimage tourism, for fueling the sector’s expansion. Investments in airport infrastructure and enhanced regional connectivity are also contributing to the industry’s upward trajectory.
Regional Hiring Trends
Among tier-1 cities, Mumbai (58%), Hyderabad (54%), and Ahmedabad (49%) are leading the demand for talent. At the same time, tier-2 and tier-3 cities like Coimbatore, Visakhapatnam, and Jaipur are becoming key employment hubs. Additionally, emerging locations such as Pune (18%), Visakhapatnam (15%), and Kochi (13%) are gaining traction as centers for job opportunities.
This simultaneous growth across metro and non-metro cities reflects a decentralised approach to employment, allowing businesses to tap into local talent pools while addressing regional economic development.
As India’s travel and hospitality sector embraces innovation and sustainable practices, the industry appears well-positioned to drive both employment and economic growth in the coming years.
(With inputs from IANS)
